Supreme Court Weakens FTC Redress Authority, in Unanimous Decision

FTC Act Section 13(b) doesn’t authorize the agency to “seek, or a court to award, equitable monetary relief such as restitution or disgorgement,” the Supreme Court ruled unanimously Thursday in AMG Capital Management v. FTC (19-508). The agency can seek restitution for consumers under sections 5 and 19, said the opinion delivered by Justice Stephen Breyer. “If the Commission believes that authority too cumbersome or otherwise inadequate, it is, of course, free to ask Congress to grant it further remedial authority,” the court wrote.

All four FTC members told the Senate Commerce Committee Wednesday that Congress needs to protect the agency’s redress authority for cases involving fraud, deception and other illegal activity. Chair Maria Cantwell, D-Wash., said she would explore legislation if the court delivered an adverse decision for the FTC. Rep. Tony Cardenas, D-Calif., introduced legislation to clarify the statute.

The commission didn't immediately comment. Nor did DOJ or AMG.